The activity in the Australian manufacturing sector observed a slight increase in July compared to the previous month but still landed below the neutral 50 mark, S&P Global said in its report on Thursday.
The Judo Bank Australia Manufacturing Purchasing Manager’s Index (PMI) increased from the previous month's figure of 47.2 to 47.5 in July. The figure marked the sixth successive monthly deterioration in manufacturing sector conditions, albeit at a slightly slower pace than in June.
"Output and new orders are both weak, back to levels seen at the cyclical low point late last year. There are also indications of genuine caution from Australia's manufacturers with the inventory holdings of both inputs into production and final goods at cyclical low points," Warren Hogan, Chief Economic Advisor at Judo Bank said.
